Chesapeake Utilities(CPK) ZACKS·2025-03-05 17:50Core Viewpoint - Income investors prioritize generating consistent cash flow, primarily through dividends, which are a significant component of long-term returns [2][6]. Company Overview: Chesapeake Utilities - Chesapeake Utilities (CPK) is based in Dover and operates in the Utilities sector, with a year-to-date share price change of 4.86% [3]. - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 2.01%, which is lower than the industry average of 3.42% and the S&P 500's yield of 1.57% [3]. Dividend Performance - The annualized dividend of Chesapeake Utilities is $2.56, reflecting a 2% increase from the previous year [4]. - Over the last five years, the company has increased its dividend five times, achieving an average annual increase of 10.07% [4]. - The current payout ratio stands at 47%, indicating that the company distributes 47% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year, Chesapeake Utilities anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $6.26 per share, representing a year-over-year growth rate of 16.14% [5]. Investment Considerations - Chesapeake Utilities is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7].